- The pair extends previous session’s rejection slide from 200-DMA.
- A modest uptick in the USD/US bond yields adds to the selling bias.
- Friday’s key focus will remain on the closely watched US jobs report.
The NZD/USD pair traded with a negative bias for the second consecutive session on Friday, albeit has managed to hold its neck above weekly lows set on Tuesday.
The pair continued with its struggled to sustain/build on the momentum beyond the very important 200-day SMA and witnessed some long-unwinding trade on Thursday amid fading optimism over a quick resolution to the prolonged US-China trade disputes.
The corrective slide extended through the early European session on the last trading day of the week and was further weighed down by a modest pickup in the US Dollar demand – further supported by an intraday turnaround in the US Treasury bond yields.
With a rate cut by the Federal Reserve at its July meeting nearly priced in, traders now seemed inclined to cover their bearish USD bets heading into Friday’s key event risk – the release of the highly anticipated US monthly jobs report, popularly known as NFP.
The US economy is expected to have added 160K new jobs in June while the unemployment rate is expected to hold steady at 3.6%. Hence, the key focus will remain on average hourly earnings, which might influence the Fed’s policy outlook and provide a fresh directional impetus.
Technical levels to watch
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